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Israel's Matomy buys Adquant's social media ad agency

TEL AVIV (Reuters) - Israeli digital advertising firm Matomy Media Group has acquired Adquant's social advertising agency, which was formerly called Adotomi, to increase its Facebook offering, the company said on Thursday.

Financial details were not disclosed.

Adquant, an Israeli social advertising software company, will now focus on providing the technology for its Facebook advertising platform. Its social advertising agency team, along with its clients, will be integrated within Matomy's social advertising unit, which will use Adquant's technology.

"This acquisition helps Matomy because our multichannel strategy is to offer advertisers ... various points of media. Social media will be very much a part of this strategy," Matomy Chief Executive Ofer Druker told Reuters.

Matomy, whose clients include American Express, AT&T and HSBC, helps advertisers to market goods and services through its network of online publishers. It earns a fee for every transaction completed through its platform so that companies pay only for results in what is known as performance-based advertising.

This was Matomy's third acquisition in the past year.

As with Matomy, advertisers marketing on Facebook using Adquant's platform only pay for results, Druker said. Matomy said there is a growing need among advertisers to acquire and retain customers via Facebook.

The acquisition also enhances Matomy's growing mobile marketing practice by offering advertisers the ability to use Facebook's targeting capabilities and drive users to mobile applications.

Adquant drives 15 billion monthly ad views on Facebook and has more than 50 apps that have one million-plus users each.

Last month Druker said firm Matomy is looking to a stock market flotation overseas or a private placement to fund its growth.